Bezeq diversifies with entry into energy

Bezeq diversifies with entry into energy

Israeli operator Bezeq announced it will enter the electricity supply sector this year with aims to be a "major player", and seizing opportunity as the nation opened its energy sector to fresh competition. 

The company detailed in a statement, it entered a non-binding agreement with Powergen a subsidiary of Generation Capital to form a joint venture to supply electricity with a target of a reaching a market share of 400,000 homes, and tens of thousands businesses by the end of 2030. The JV is expected to launch in Q2 this year. 

Bezeq will take the reins in marketing and sales and Powergen will supply the electricity through generation and storage facilities. 

"Bezeq does not plan to make substantial capital investments and has no commitment to minimum quantities of customers," said Bezeq CFO Tobi Fischbein in a letter to investors, reported by Reuters, adding that Powergen is responsible for project financing.

The executive added Bezeq has a large customer base and operation capabilities, talking up how the telecoms firm "has natural potential to be a major player in a sector that is opening up to competition."

Israeli citizens were supplied solely by state-owned Israel Electric Corp. The government moved to open up the sector to competition in 2018. 

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